Most investors obsess over what to buy. Very few have a clear, repeatable plan for when to sell.

In this episode of Stock Spotlight, I break down the risk-aware and thesis-driven selling framework I use to protect capital early, avoid deep losses and continuously upgrade portfolio quality over time. Selling is not about calling tops. It is about defining your downside before emotion sets in, managing uncertainty when conviction is still forming and only staying invested when the business continues to validate the original thesis.

I walk through how I set downside boundaries during the first 0-90 days of ownership, why thesis drift becomes the most important long-term sell signal and how I use KPIs to keep the decision grounded in evidence instead of narrative. You’ll hear exactly how this played out in two real examples from my own portfolio, including Duolingo and e.l.f. Beauty, where the “why” behind the sell mattered as much as the timing.

I finish by sharing the five questions I now ask before exiting any position. If you’re a long-term investor who wants a structured way to sell with discipline instead of regret, this episode lays out the full framework.

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00:00 Opening

01:12 Why Selling Matters

02:31 Early Risk Management

05:13 Thesis-Driven Selling

09:05 Reallocating Capital & Improving Quality

10:58 Case Study - $DUOL

14:18 Case Study - $ELF

17:17 5 Questions to Ask Before Selling

17:57 Closing

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Intro Music: Andrey Rossi – Seize the Day

Outro Music: Ra – Prospect

*Music provided by Uppbeat Premium

Follow me on X: https://X.com/invest091

Subscribe to my YouTube channel: https://www.youtube.com/@stockspotlightpodcast

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Disclosure: The host of Stock Spotlight is not a licensed financial advisor. The information and opinions shared during the show are for entertainment purposes only.

In this episode, Michael takes a close look at Toast, one of the fastest growing names in restaurant technology. Toast has delivered a 50% 5-YR revenue CAGR, 80% 5-YR gross profit CAGR, 110%+ net retention and its first year of positive SBC adjusted free cash flow. Despite that momentum, the company is still early in its profitability journey. SaaS quality is improving, but the payments heavy revenue mix continues to distort gross margins and complicate valuation work.

The path from high growth to a durable compounder remains open. If Toast executes consistently, today’s valuation may offer intriguing opportunity, but if it stumbles, the outcome range widens quickly. Michael breaks down why the fair value estimate spans $28 to $43 and highlights the KPIs that matter most, including SaaS gross profit contribution and ARR per location. For quality focused investors, Toast is not yet a core compounder, but it may be a compelling optionality position at the current price of $35.

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00:00 Intro

00:37 Investment Checklist & Database

01:25 Business Overview

12:18 Industry Overview

18:41 Quality Growth Profile

19:36 Financial Statement Overview

24:38 Leadership & Incentives

27:37 KPIs to Track

28:55 Valuation & Technical Analysis

33:05 Verdict

35:20 Outro

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Intro Music: Andrey Rossi – Seize the Day

Outro Music: Ra – Prospect

*Music provided by Uppbeat Premium

Follow me on X: ⁠⁠https://x.com/invest091⁠

Subscribe to my YouTube channel: https://www.youtube.com/@stockspotlightpodcast

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Disclosure: The host of Stock Spotlight is not a licensed financial advisor. The information and opinions shared during the show are for entertainment purposes only.

In this special episode of Stock Spotlight, host Michael steps back from individual company deep dives to unpack the core framework behind his entire investing process — the 15 metrics that truly matter. From returns on capital to reinvestment discipline, from free cash flow conversion to innovation efficiency, these are the numbers that separate durable compounders from fragile growth stories.

Michael explains what each metric reveals, how to calculate it and why it deserves a place in every investor’s toolkit. By the end, you’ll understand how to connect the dots between a company’s quality, its compounding rate and its long-term value creation.

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00:00 Intro

01:33 Value Creation

08:28 Cash Flow Quality

10:45 Business Model & Management

17:35 Innovation Efficiency

20:14 Solvency

24:53 Closing

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Intro Music: Andrey Rossi – Seize the Day

Outro Music: Ra – Prospect

*Music provided by Uppbeat Premium

Follow me on X: https://X.com/invest091

Subscribe to my YouTube channel: https://www.youtube.com/@stockspotlightpodcast

----------------------------------------------------------------

Disclosure: The host of Stock Spotlight is not a licensed financial advisor. The information and opinions shared during the show are for entertainment purposes only.